Apple Shareholders Reelect Board Amid Concerns About Jobs
February 25 2009 - 2:28PM
Dow Jones News
Apple Inc. (AAPL) shareholders Wednesday reelected the entire
board of directors, including Chief Executive Steve Jobs, whose
absence from the annual shareholder meeting underscored the
prospect of a leadership succession at the computer maker.
Shareholders also defeated proposals that would have given them
a say on executive compensation, would have required Apple to
disclose more about corporate political donations and its carbon
footprint, and would have called for universal health care.
The meeting, at the company's Cupertino, Calif., headquarters,
is notable because it is the first that Jobs, a co-founder of the
company, has missed in a decade. In January, the pancreatic cancer
survivor said he was taking a leave of absence to seek more complex
treatment, raising the prospect of a change in leadership.
In addition to Jobs' absence, Google Inc. (GOOG) CEO and Apple
board member Eric Schmidt wasn't at the meeting.
In midday trading Wednesday, Apple shares were up 1.5% at
$91.62. Apple's shares have fallen by more than 50% since hitting
their all-time high of $202.96 on Dec. 28, 2007.
So far, the board meeting has been uneventful and procedural.
But shareholders will get an opportunity to ask questions of the
board, marking the first time Apple investors have had to quiz
board members about Jobs' health. The issue, along with succession
talk, is expected to dominate the session.
On Jan. 5, Jobs disclosed in a letter posted on Apple's Web site
that he was suffering from a "hormone imbalance" and that the
remedy was "relatively simple and straightforward." The same day,
the board expressed support for Jobs. But nine days later, Jobs
announced he was seeking a more complex treatment that would
require him to leave the company until June.
The Securities and Exchange Commission has been investigating
whether the disclosures were made in a timely manner, according to
The Wall Street Journal.
Despite the reports of an investigation, Apple's board, which
includes former Vice President Al Gore, has remained silent since
its Jan. 5 note. Board members have either declined to comment or
failed to return requests for comment on the situation.
In Jobs' absence, Apple has pushed other executives, namely
Chief Operating Officer Tim Cook and Senior Vice President Phil
Schiller, as the public faces of the company. That's helped to
somewhat soothe some investors worried about whether the company
has the bench strength to move ahead without Jobs, though many
remain anxious for information about his health.
"There are still some concerns about that," Shaw Wu, an analyst
at Kaufman Brothers, said of Jobs' health status. "Many people see
it as a private matter, but on the other hand, he's such an
important part of the company."
Intuit Inc. (INTU) Chairman William Campbell, an Apple director
since 1997, and Genentech Inc. (DNA) CEO Arthur Levinson, a board
member since 2000, were chosen as co-lead directors. Also reelected
were Jobs, a board member since 1997; Gore, a board member since
2003; J. Crew Group Inc. (JCG) Chief Executive Millard Drexler, a
director since 1999; Avon Products Inc. (AVP) Chief Executive
Andrea Jung, a director since 2008; Google's Schmidt, a director
since 2006; and venture capitalist Jerome York, a member since
1997.
-By Ben Charny, Dow Jones Newswires; 415-765-8230;
ben.charny@dowjones.com